FuboTV to Cease All Sportsbook and Gaming Operations

• FuboTV announced their closure of Fubo Gaming to secure a positive cash flow by 2025.
• They represented less than 1% of the market during 2022 March Madness in Arizona.
• FuboTV Sportsbooks in Iowa, New Jersey, and Arizona will close immediately.

NEW YORK – FuboTV announced its third quarter results for 2022 on Monday. After going over the data, they disclosed their mindset to close Fubo Gaming.

Looking for financing partners, FuboTV was unable to secure any help. Now, the streaming company is shutting down their online sports betting products.

Available in NJ, Arizona, and Iowa, a crowded market led to their demise.

With two dozen sportsbooks in NJ, there is also a crowded field of AZ sportsbooks (18). Add in Iowa’s online sports betting market of 18 sportsbooks, and Fubo Sportsbook was three of the 60.

Sitting with 5% of the sportsbooks in those states, their betting handle did not line up.

Take FuboTV Sportsbook in Arizona. In December 2021, they reported $34,496 for their first month of action. For the Super Bowl and March Madness, they closed in on one million.

Total Bet At FuboTV  Sportsbook Arizona

• February – $895,231
• March – $879,565

While this looks comforting, this was only the amount bet at Fubo Sportsbook.

After paying out winners, they kept $186,150 during the two busiest sports betting months. And this is before deducting free bet promos and taxes.

Aside from that, the high-$800,000 betting handle pales in comparison. In fact, in March 2022, Fubo’s $879,565 handle represented 0.127% of the month’s $690 million handle.

With this, effective immediately, FuboTV will close Fubo Gaming. This includes an instant closure on their sportsbooks.

As a company, Co-founder and CEO David Gandler “expects to deliver strong revenue” in Q3. With a goal of being cash flow positive by 2025, the “challenging macroeconomic environment” seemed to be too much.

At time of writing, their stock is +0.24 (6.30%) after hours. The next earnings call will be on November 4.

News tags: Arizona | David Gandler | Fubo Gaming | Fubo Sportsbook | FuboTV | Iowa | New Jersey